What’s Gotten Into These Stocks? Hansen Medical, Inc. (HNSN), Intuitive Surgical, Inc. (ISRG)

Page 1 of 2

What’s gotten into these stocks? Two stocks in the health-care sector have been on solid run-ups in recent weeks. Hansen Medical, Inc. (NASDAQ:HNSN) shares jumped more than 16% in the last month, while shares of Pacific Biosciences of California (NASDAQ:PACB) are up nearly 33% over the same period. What is behind these increases? Let’s take a look.

Intuitive Surgical, Inc. (NASDAQ:ISRG)Robots for sale
Hansen Medical makes surgical robotic systems, namely Sensei and Magellan. Sensei helps physicians collect electrophysiological data within the heart atria. Magellan is used by physicians in clearing clogged arteries in patients’ arms and legs. Unfortunately for Hansen, sales for the Sensei system, which has been commercially available for more than five years, have yet to really take off. Magellan has been available for a little over a year, so it’s still too early to tell how sales will fare for the newer system.

HNSN Revenue TTM Chart

HNSN Revenue TTM data by YCharts.

The chart shown above illustrates Hansen’s problems. Sales have been relatively flat for the last five years. Meanwhile, the company has continued to operate in the red the entire time with no sign of profitability on the horizon. And yet Hansen’s stock has been on a tear recently. What’s the catalyst?

There have been no big news stories or other obvious developments to explain the stock’s rise. The only truly notable activity in the past month is additional insider purchasing by Larry Feinberg, head of Oracle Investment Management. Oracle Investment Management currently owns nearly 11% of Hansen. However, Feinberg’s buying so far in 2013 hasn’t been huge (less than $250,000) and is a continuation of relatively steady purchases since October.

Unusually heavy volume occurred on Jan. 22, a day that saw Hansen shares jump around 14%. Obviously, more people than just Larry Feinberg are buying. The question is, “Why?” Unfortunately, in absence of concrete facts, we’re left only with speculation.

One possibility is that some think that a potential acquisition of Hansen is in the works. A possible buyer could be Intuitive Surgical, Inc. (NASDAQ:ISRG) . Intuitive already has paid $20 million to Hansen for licensing of technology and $10 million for nearly 5.3 million shares in stock. Another possible buyer is St. Jude Medical, Inc. (NYSE:STJ) . Hansen and St. Jude have a co-marketing agreement in place for integrating the Sensei system with St. Jude’s Ensite cardiac mapping system.

Both Intuitive and St. Jude have plenty of cash to pick up Hansen. Both have reasons to be interested. If any acquisition talks are under way, though, Intuitive Surgical looks to be the more likely buyer, since it already has skin in the game. At this point, however, we’re still only talking about “ifs” and “maybes.”

It’s in the DNA
Pacific Biosciences has had an even bigger run thus far in 2013. Shares were up close to 80% for the year before pulling back. What jump-started the climb for this small-cap DNA sequencing company? Two key factors appear to be at work.

First, the company announced good news in early January. The 100K Pathogen Genome Project selected PacBio’s SMRT technology to sequence the genomes for at least 1,000 foodborne pathogens. This announcement could represent the beginning of a turnaround for PacBio, which didn’t record any instrument sales last quarter. Analysts are expecting the company’s fourth-quarter results, which are released today, to improve somewhat.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!